N.C. Eastern Region begins transformation from public to private

By Sue Book, Sun Journal Staff

Saturday

Jun 15, 2013 at 12:01 AMJun 15, 2013 at 4:14 PM

North Carolina Eastern Region's board took action on the first steps toward transforming the public economic development group into a private nonprofit economic development partnership during a meeting in Kinston Thursday.

North Carolina Eastern Region's board took action on the first steps toward transforming the public economic development group into a private nonprofit economic development partnership during a meeting in Kinston Thursday.

The move keeps with the state economic development restructuring strategy proposed by Gov. Pat McCrory and Commerce Sec. Sharon Decker and included in N.C. Senate Bill 127.

The bill, with primary sponsor Sen. Harry Brown, R-Onslow, passed the Senate 33-15 May 14 and, with some changes, is now generally thought to have sufficient House votes to become law.

The state plan would dissolve North Carolina’s seven regional economic development groups including the 13-county N.C. Eastern Region in an effort to streamline statewide economic development efforts to create more jobs.

While the idea has been on the table for awhile, the action by the NCER board this week took Craven County officials by surprise.

“I haven't had time to digest it yet or share some of the information with the board,” said Jack Veit, Craven County manager. “We need to take a harder look at it to see what it means for Craven County.

Jim Hicks, Craven County attorney, said, “I was meeting with the county manager on another matter and this came as quite a surprise.”

He received documents to review this weekend and present to Craven County Board of Commissioners Monday morning.

The vote reactivating North Carolina's Eastern Alliance Corporation (NCEA), a 501(c)4, came with Craven County NCER Board Member Mark Griffin of Dover as the only dissenter,

John Chaffee, N.C. Eastern Region president and CEO, said in a release that NCEA will most likely assume all of the economic development activities undertaken by North Carolina’s Eastern Region, in the event the public entity is dissolved.

Griffin said, the Alliance has “been around about 10 years, set up to allow for private business within the community to be members. They could offer input without a voting voice as a way to get more economic development dollars.”

“They did a viability study on it and found it couldn't raise money so it sat there as a nonprofit that was not really active,” said Griffin, also the only member present to decline membership in the Alliance.

There are, however, strong supporters of the nearly 20-year NCER and efforts to let it move with the current political and economic times.

Jones County Economic Development Director Jayne Robb said, “We consider the Eastern Region our main partner and the service that it provides to rural communities like Jones County allows us to be competitive.”

Jones has used NCER help to expand some companies in the last few years and has recently announced new projects by TC2 and Beer Army.

Paul Buchanan, an Onslow County Board of Commissioners appointee, was elected chairman of the Alliance board, with Chaffee as president and Sylvia Nesbitt as secretary-treasurer.

In an email to county economic developers, forwarded to county managers of the 13 counties, Chaffee said, “We start our new journey well-funded with several million in the bank, high hopes for our fundraising effort, and optimism that we will be a regional economic development service provider to a statewide economic development agency. Time will deliver the new reality.”

“I trust all of you are well and making progress with your development efforts,” he said. “We intend to be your partner going forward … the final choice is yours.”

“I'm against it,” Griffin said. “The money they want to transition from N.C. Eastern Region is money taken from the $5 license plate fee. With yesterday's decision, $3.6 million administration money, 15 percent, went over to the alliance.

“I was the only one who voted no and they did amend whatever part was owned by a county that wanted to get out could leave with their money,” Griffin said. “Those tax dollars were intended for the N.C. Eastern Region.”

Under the plan, the Alliance will keep the same name, brand, website, and email address as N.C.'s Eastern Region to make the transition be as seamless as possible for partners and clients, Chaffee said.

Rep. Michael Speciale, R-Craven, has introduced a bill in the House to let counties lay claim to their loan pool money at NCER, which was initially called the Global TransPark Development Commission.

Craven County has about $1.9 million in that fund that has been essentially idle since interest rates for start up businesses were often lower from public lenders than from the NCER.

Craven County commissioners had been making moves already this year to pull out of N.C.'s Eastern Region if it could take its money home for economic development efforts here.

Sue Book can be reached at 252-635-5665 or sue.book@newbernsj.com. Follow her on Twitter@SueJBook.

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